19/06/2025 Daily Reports
• June Pause, But August Cut Expected
Despite soft labour data, BoE held rates at 4.25%. However, signs point to the first rate cut in August, followed by another in November.
• UK Labour Market Cooling Rapidly
Job numbers show a 9-month streak of declines. Wage growth is also undershooting BoE’s projections. Signs of easing inflation are starting to show.
• Two More Cuts in 2026
BoE’s likely path includes four total cuts by the end of 2026, barring a major inflation shock (e.g., energy prices surging).
• Markets Unmoved… For Now
The pound barely reacted to the rate decision. A 6-3 vote split in favor of keeping rates steady had been well priced in.
• EUR/GBP: Risks Tilted to the Upside
EUR/GBP could climb above 0.870 in H2 2025 due to UK economic fragility, geopolitical uncertainty, and potential trade shocks.
• What’s Next?
The BoE remains cautious in the face of volatile and unreliable data, but the softening in jobs and inflation gives them breathing room to ease policy soon. Markets may underestimate how quickly sentiment can shift if UK data worsens or global volatility resurfaces. While the pound has held up so far, the downside risks
Open A Live Account
CDO has wide range of tools, professional and friendly support for clients to achieve their financial markets trading goals. Open a live account now to enjoy this experience with virtual deposit.
US Officials Anticipate Potential Iran Strike as Tensions Escalate; Nippon Steel Completes US Steel Purchase with Government Blessing; China’s 618 Festival Dampened
• US top officials are reported to be making arrangements for the possibility of a military strike against Iran in the coming days, a sudden heightening of the Israel-Iran showdown. President Trump has publicly joked about doing so, and things are still uncertain. This is at a time when oil prices are moving with unprecedented volatility fueled by geopolitics.
• Among other leading news, Nippon Steel and US Steel have finalized their “historic partnership,” a virtual $15 billion acquisition with the US government holding a “golden share” and rights to vote on key business decisions, a sign of higher national security concerns in strategically significant companies.
• Conversely, Swiss National Bank (SNB) posted increased uncertainty in economic and financial outlook on the basis of trade and geopolitical tensions, although there was improved profitability for banks in Switzerland during 2024. In China, the mid-year 618 shopping festival came and went with little fanfare and ceremony, which illustrates a more risk-averse consumer environment.
• Meanwhile, Democratic Texas lawmakers have asked Tesla to delay its scheduled rollout of robotaxis in Austin until September, when a new autonomous-driving law aimed at public safety will take effect.
CDO TRADER
CDO TRADER, our cutting-edge trading platform, follows the technology from the forefront with new features added continuously. Moreover, CDO TRADER is now available for Android and iOS! So it allows you to trade on the go!
